Private lending › Residential lending
Private mortgages
over residential property.
Houses and apartments are the most widely accepted security in the private market. We place first and second mortgages over residential property for business and investment purposes, where a bank's servicing test is the obstacle rather than the asset.
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Same day, in writing. No credit check to enquire.
The basics
What a private mortgage is
A private mortgage is a loan secured by a registered mortgage over property, funded by a private lender or non-bank funder rather than a bank. Residential security is the most liquid and best understood asset class in the market, so it attracts the deepest lender appetite and the sharpest pricing available in private lending.
The distinction that matters is purpose, not property type. Borrowing against your home to buy the home is consumer credit, and banks do that well. Borrowing against residential property you already own to fund a business, settle a tax debt, bridge a purchase or contribute equity to a project is business or investment purpose lending, and that is where the private market operates.
Because these loans are assessed on the security and the exit rather than a servicing calculator, they suit borrowers whose income is real but awkward to evidence: recently self-employed, income across multiple entities, a strong asset position with lumpy cash flow. The property does the work that payslips would otherwise do.
What we place
Residential security we arrange against
- Owner-occupied homesWhere the purpose is business or investment. The house is the security, not the reason for the loan.
- Investment propertiesTenanted or vacant, held individually, in a trust or through a company.
- Apartments and unitsIncluding higher-density stock, though very small floor areas narrow the lender pool.
- Multiple propertiesCross-collateralised across two or more residential titles where one alone does not carry the facility.
Typical structure
Because these loans are assessed on the security and the exit rather than a servicing calculator, they suit borrowers whose income is real but awkward to evidence: recently self-employed, income across multiple entities, a strong asset position with lumpy cash flow. The property does the work that payslips would otherwise do.
Credit appetite
What lenders assess
Equity, not payslips
The gap between what the property is worth and what is owing against it determines the facility. Income evidence matters far less than it would at a bank.
Position on title
A first mortgage prices better than a second. A second needs the existing lender's consent, which is usually the slowest part of the process.
The exit
A refinance to a bank once the business is bankable again, a sale, or a settlement. Residential lenders want a specific repayment event, not a general intention.
Location
Metropolitan and major regional centres attract the best terms. Remote or single-industry towns narrow the panel and reduce leverage.
A limit worth knowing
We arrange lending for business and investment purposes. If you need a loan to buy or refinance the home you live in for personal reasons, that is regulated consumer credit and a mainstream or specialist bank lender is almost always the better and cheaper answer. We will tell you that rather than placing the wrong product.
Terms
Residential lending parameters
Residential is the sharpest end of private lending because the security is liquid and lender appetite is deep. Metropolitan houses at moderate LVR sit at the bottom of the range.
| Rates | From 7.99% p.a. |
|---|---|
| Establishment fee | From 0.75% |
| Term | 3 – 60 months |
| Maximum LVR | Up to 80% |
| Loan size | From $200,000 |
| Purpose | Business and investment |
| Indicative terms | Same day |
FAQ
Frequently asked questions
What is a private mortgage?
A private mortgage is a loan secured by a registered mortgage over property and funded by a private or non-bank lender rather than a bank. It is assessed primarily on the value of the security and the credibility of the repayment plan rather than on standardised income and servicing tests.
What is private mortgage lending?
Private mortgage lending is finance provided by non-bank funders, ranging from single high-net-worth lenders through to managed mortgage funds, secured against real property. It fills the gap where a deal makes sense on the asset but does not fit bank policy on the borrower.
How does a private mortgage work?
The lender values the property, checks what is already secured against it, and advances a percentage of value. Interest is either paid monthly or capitalised into the loan, and the facility is repaid at the end of its term from an agreed exit such as a sale or a refinance.
What is a private lender mortgage?
The same thing as a private mortgage: a mortgage where the funds come from a private lender rather than a bank or credit union. Terms are typically shorter, pricing is higher, and assessment is faster and more flexible.
Can I get a private mortgage on my own home?
Yes, where the purpose of the loan is business or investment rather than personal. Using the equity in your home to fund a business, settle a tax obligation or contribute to a project is common. Borrowing to buy or refinance a home for personal reasons is regulated consumer credit and generally better served by a mainstream lender.
Do private mortgage lenders check income?
Far less than a bank does. Most assess the security and the exit rather than running a servicing calculator, which is why they suit self-employed borrowers and people with income spread across entities. Some evidence of how interest will be met is still expected.
How much can I borrow against a residential property?
Up to 80% of value across our panel, inclusive of any existing mortgage. A property worth $1.2m with $700,000 owing has room for roughly $260,000 at that ceiling, subject to valuation and lender assessment.
Is a private mortgage more expensive than a bank loan?
Yes, materially. The trade is speed, flexibility and the fact that the loan happens at all. It is a tool for a defined period with a clear exit, not a long-term substitute for bank funding.
Enquire
Tell us about the property.
Address, rough value, what is owing, and what the funds are for. Indicative terms the same day.
Prefer to talk it through? Call 0478 715 429.